Gainful Employment Rules have been adopted by the Department of Education as of this summer. Some experts are stating that as a result of this ruling up to one third of all programs presently being offered will have to go “on probation.” Subject to a successful legal appeal by APSCU, some schools will start to see “probation deficiency letters” at the end of this year.
A deficiency letter simply states that a given program(s) that you offer does not meet Gainful Employment Guidelines. A deficiency is loosely described as when student loan payments exceed 12% of first year’s gross income. If this happens two out of three years, a school cannot use federal student loan funding. If grad payments float between eight and twelve percent four out of five years, the school loses its funding.
Probation has implications for schools; it is a mess and you need to build a strategy to deal with the possibility. Now!
Check out our Podcast#26 – “Elephant in the Room – How To Promote When On Gainful Employment Probation” to learn strategies to overcome strict gainful employment rules. You’ll also have access to the rest of this blog post, featuring 6 Thought Starter Tips for creative ways to work around this issue! With 1 click you’ll have access to over 30 podcasts featuring industry insiders espousing their wisdom to you – for free!